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Company forces salary reduction on employees with a limited contract in UAE. Is it either reduction or termination. Should response be signed in 3 days.?

The Company is not changing the official employee contract in the Ministry of Labour. Rather they are reducing the salaries internally, by taking back from the given salaries of the employees to avoid WPS issues. They made the employees sign the letter in3 days either to get terminated with all benefits and salary for3 months "OR" to work with the same company with-% salary reduced (they have calculated the gratuities till the end of that month and only given to employees who choose the reduced salary without any benefits). Are the employees that are continuing to work on reduced salaries eligible to get some benefits from Ministry of Labour as per their previously registered contracts with the Company?

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Question added by Aijaz uddin PMP Muhammad , Integrated Solutions Manager , Asmak Al Emarat LLC, Aquaculture Facility
Date Posted: 2018/07/17
Majd Hasweh
by Majd Hasweh , Online Volunteer HR Moderator , Bayt.com

I hope you will be able to get the answer from specialists in UAE asap.

Good luck.

Mahmood Rehman
by Mahmood Rehman , Security Coordinator , KRATOS

Staff should be given one month advance notice about the reduction or decrease in salary and asked to give option which one would they accept. 

Frank Nwaogu
by Frank Nwaogu , Housekeeping Room Attendant , Charity memorial center

Awesome , if not following the company procedures

usman jafar jafar
by usman jafar jafar , Administrative Employee , Zeetech company lahore

Company focused on employee satisfaction and sources on income thT are able to perform tasks and duties with care and honest

Abdul Ally
by Abdul Ally , Customer Service Officer , National Social Security Fund (NSSF)

Im not sure about that since I know this could be happen once the crises occur.

Elango Krishnan
by Elango Krishnan , Project Management Engineer , Raissy Trading and Contracting Co Ltd

To stabiles help Increase growth of company instead of reduction of salary

In the UAE: A company cannot reduce salary in a limited contract without the employee’s written agreement. If the company does it forcefully, it is not legal. Employees can report this to the Ministry of Human Resources and Emiratisation (MOHRE). So, yes, reducing salary without permission is against the law in most cases.

If it is mentioned in the work contract and the company's conditions are not financially favorable, there is no problem and the company will compensate in the future.

Rashedul Islam
by Rashedul Islam , Assistant Administrator , Red Sea International Housing Service

Currently in my company the salaries are not based on nationalities but if a company apply this methods it could be their own perspective.

Jagdish  Joshi
by Jagdish Joshi , Project Controller , Sirpi Alusteel Construction Co

Acceptable.  My performance will be productive and appreciable.

Raam Kumar
by Raam Kumar

Ok I will work I can develop my skill

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